Question

Question 25 of 75. Quinton owns a hobby shop specializing in the sale of kites. Which of the following should NOT be included in his inventory? Four crates of kite string for sale to customers. An assembled kite displayed in his shop. The kite is for sale Seven EZ-Launch kite catapults Quinton is selling on consignment for a friend. Thirteen Sky Warrior decal kits held for sale to customers. Mark for follow up Question 26 of 75. What is the proper application of the lower of cost or market to value Inventory? Apply the method to the inventory as a whole. Apply the method to each item in inventory Apply the method to the average cost of items in Inventory. Apply the method to the items of inventory that exceed the average cost of the inventory as a whole. Mark for follow up Back Save / Return Later Summary Next >>

Answer 1

25.

All the item except the one that is selling on consignment for a friend are his own inventory and will be included in his inventory. Sale on consignment is a sale on behalf of someone else, as an agent. Therefore, that will be recorded in friend's inventory.

Therefore, Correct answer is C. Selling on consignment for a friend.

26.

Lower of cost or market value, should be applied individually to every item that is easily seperable and individually identifiable. If not, then it can be applied to group of similar items.

Therefore, Correct answer is B. Apply to each item on inventory.

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